base rate tracker or offset mortgage....?

Hi All. about to get a new mortgage..

Have a choice between a base rate tracker or an offset mortgage.. I know each has it's own advantages.. but in my position which do you think would be best....?

OK... here's the situation

Mortgage of £244k

repayments on BOTH BRT and offset are about £1500 p/month.

We are planning to pay £2000 a month... so

a) either an overpayment of £500 a month on the BRT....

or

b) £500 a month into the savings account. (which is offset against the mortgage.

My mortgage advisor seems to be pushing me towards the offset route.. Im used to standard BRT/fixed rate.

Both methods push the term down from 25 years to about 15 years, by paying the extra £500.

We are 100% sure we would not be tempted to use the savings in the account to buy things.. (cars/holidays etc etc..)

Thanks for any advice... topgooner.

Reply to
topgooner71
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It's simply a matter of which one applies the overpayments quicker. If they both do it daily there should be no difference. Ask the advisor to put in writing how much commission they're getting and how much they will pass on to you as it's money for old rope. See

Name the mortgages and someone may able to give more precise advice.

Last I heard First Direct had the best offset mortgage. Many of the sites have calculators, eg

Real base rates are at their lowest since 1980. This may explain the recent surge in inflation. I wouldn't be surprised if base rates increase further than the quarter percent most analysts seem to expect.

hth

Daytona

Reply to
Daytona

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